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Las Vegas Sands (NYSE: LVS)
Q3 2024 Earnings Call
Oct 23, 2024, 4:30 p.m. ET
Las Vegas Sands Reports Strong Q3 2024 Results Amid Macao Growth
Key Highlights:
- Prepared Remarks
- Questions and Answers
- Call Participants
Forward-Looking Statements and Financial Guidelines
Operator
Good day, ladies and gentlemen, and welcome to the Sands third quarter 2024 earnings call. All participants are currently in listen-only mode. The floor will open for questions and comments after the presentation. I now turn the call over to Mr. Daniel Briggs, Senior Vice President of Investor Relations.
Daniel J. Briggs — Senior Vice President, Investor Relations
Thank you for joining us. Joining today are Rob Goldstein, our Chairman and CEO; Patrick Dumont, President and COO; Dr. Wilfred Wong, Executive Vice Chairman of Sands China; and Grant Chum, CEO and President of Sands China and EVP of Las Vegas Sands Asia operations. We will be making forward-looking statements today under the safe harbor provision of federal securities laws. Actual results may differ from these statements. We will also discuss non-GAAP measures, with reconciliations available in our press release.
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An earnings presentation is available on our website, which we will refer to during this call. We ask that participants limit themselves to one question and one follow-up during the Q&A session to ensure everyone’s participation. This presentation is being recorded.
I will now turn the call over to Rob.
Robert Glen Goldstein — Chair and Chief Executive Officer
Thank you, Dan, and thank you all for being here. The Macao market continues to show growth. In the third quarter of 2024, total market revenue increased by 13% compared to the same quarter in 2023. Gross gaming revenue in Macao rose 14% year-over-year. We believe the Chinese economy will continue to thrive, which bodes well for the Macao market. We anticipate gross gaming revenues in Macao will exceed $30 million by 2025, with further growth expected thereafter.
Our investment in high-quality assets and strategic capital programs puts us in a favorable position to outperform market growth, not just in the premium customer segment but overall. Our recent expansion of the Londoner Grand Casino, which includes the opening of the first 300 Londoner Grand Suites, enhances our competitive edge significantly. By Lunar New Year 2025, we expect to have all 1,500 suites available for guests.
Q3 2024 Performance and Future Outlook
We are leading the market in both gaming and non-gaming revenue. Our competitive advantages are clear, and we expect a pronounced improvement in our offering with the completion of the second phase of The Londoner in 2025.
In Singapore, we recorded strong results as well, with MBS EBITDA reaching $406 million. If we had held steady in our rolling play segment, our EBITDA could have been approximately $78 million higher. High-value tourism trends are driving these results, and as we finish our capital investments, we foresee considerable growth opportunities ahead.
Thank you for your time. I’ll now pass it to Patrick for further details before we open up to questions.
Patrick Dumont — President and Chief Operating Officer
Thank you, Rob. Macao’s EBITDA for the quarter stood at $585 million. If we had achieved our expected hold in the rolling play, our EBITDA would have been $2 million higher. Without the impact of the Londoner’s renovation, our EBITDA margin for our Macao properties would have been adjusted to 35.1%, down 110 basis points year over year. The Venetian’s margin was 38.6%, which we expect to improve as operations resume in November and as visitor numbers increase.
As Rob mentioned, we will see stronger competitive positioning as we roll out new offerings from the Londoner Grand renovation. We anticipate significant EBITDA growth and better margins moving forward. In Singapore, while there was some impact from our rolling play segment, the overall results reflect the effective tourism strategies and premium product offerings, setting the stage for continued growth.
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Marina Bay Sands’ $1.75 billion refurbishment program is just getting started. The initial results are promising, particularly from the new tower gaming offering that opened in September. The next phase of investment in the project is expected to wrap up around the second quarter of 2025, setting the stage for further growth in the coming years. For more details on estimated costs associated with the Marina Bay Sands IR2 project, refer to Page 44 of our earnings presentation.
We are committed to investing in the sustainable growth of high-value leisure and business tourism in Singapore. This refurbishment effectively expands Marina Bay Sands, including the Arena, and aims to develop an integrated resort featuring a comprehensive range of amenities, including enhanced gaming options. We eagerly anticipate discussing this significant growth opportunity during the Q&A session.
Now, shifting focus to our capital return program, we repurchased $450 million worth of LBS in the last quarter. Additionally, our board has raised the authorization for future repurchases to $2 billion. We also paid a quarterly dividend of $0.20 per share this quarter, with an increase in our annual dividend to $1 per share or $0.25 per quarter for the 2025 calendar year.
Looking ahead, our capital return strategy aims to increase shareholder returns. Thank you for joining the call today; we are now ready to take questions.
Questions & Answers:
Operator
Thank you. The floor is now open for questions. [Operator instructions] Our first question comes from Joe Greff with JPMorgan. Please proceed.
Joseph Greff — Analyst
Good afternoon, everyone, and congratulations on the results. I have a two-part question regarding Macao. In the 3Q, contra-gaming revenues as a percentage of gross gaming revenues decreased by almost 200 basis points. How much of this change is due to your management strategies and promotions, and how much can be attributed to the overall market’s promotional activity? Additionally, how does the mix of base, mass, and premium mass play into this? I have a follow-up after that.
Patrick Dumont — President and Chief Operating Officer
That’s a great question, Joe. We have been quite focused on this issue. Over the past two quarters, we’ve been affected by disruptions that limited our management capabilities. As operations have stabilized, we’re shifting our focus to improving efficiency and margins. The recent margin trends partially stem from removing many rooms from inventory, which affected our overall margin performance.
The majority of the margin changes are linked to the high-margin business we were unable to fully capitalize on due to the reduced availability of rooms. However, we view this period as the beginning of a more disciplined approach to managing our assets, which should positively influence future outcomes. I’ll pass it over to Grant for additional insights.
Grant Chum — President and Chief Executive Officer, Sands China
Thanks, Patrick. As Patrick mentioned, last quarter we implemented tactical measures to manage the transition from the old Pacifico Casino as it moved into full closure. However, in the third quarter, we returned to our core strategy, focusing on the quality of our products and offerings. Even with increased disruptions and fewer rooms available, we managed to reinvest in our customer base effectively, maintaining our market share relative to the previous quarter.
Overall, I would characterize our margin performance as strong, especially considering we grew EBITDA sequentially even as market GGR showed a slight decline compared to the second quarter.
Joseph Greff — Analyst
Thank you. For my follow-up regarding Macao, the Golden Week showed strong results, and performance in October appears to be better than expected. Could you discuss the drivers behind this performance? How much of it is due to local equity price increases or specific seasonal events?
Patrick Dumont — President and Chief Operating Officer
We prefer not to comment extensively on the current quarter due to our policy, but we are pleased with the quality of visitors to our properties in both Macao and Singapore. There’s optimism regarding our upcoming offerings and the continued influx of high-value tourists, who are recognizing the quality experiences we provide. Entertainment has also played a critical role in attracting this demographic, and we are focused on leveraging entertainment opportunities as they arise.
Joseph Greff — Analyst
Thank you.
Operator
Next, we have Stephen Grambling from Morgan Stanley. Please proceed.
Stephen Grambling — Analyst
Thank you. Turning our attention to Marina Bay Sands, EBITDA has been relatively stable between $450 million to $500 million in recent quarters. Can you explain the latest disruptions and any associated work, particularly regarding room additions, and how this might change heading into next year?
Patrick Dumont — President and Chief Operating Officer
Certainly. In this past quarter, we had approximately 1,600 rooms available compared to about 2,100 last year, which represents significant disruption from a room inventory perspective. Additionally, we are conducting some renovations on the casino floor, which has also been disruptive. As of September, we expect to have 27 newly renovated salons ready, along with several other enhancements in progress.
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Marina Bay Sands Updates on Renovations and Market Resilience
In a recent update, the executives of Marina Bay Sands discussed various ongoing projects, with a focus on their renovations and the performance of their casinos. Significant progress is being made, even amid some disruptions.
Current Renovation Status
Management highlighted that work on Tower 1 and Tower 2 has been completed, while Tower 3 is currently underway. The renovation includes an expanded Sky Gaming area, a new feature approved under the development agreement for IR2. The goal is to add another 150 rooms by the end of the current quarter. However, operations remain slightly disrupted due to ongoing work in certain areas of the casino.
Future Prospects for Revenue Growth
Robert Glen Goldstein, Chair and Chief Executive Officer, expressed optimism that by May 2025, major disruptions from renovations will end. He anticipates improved financial results from both the Londoner and Singapore operations, expecting Singapore to perform particularly well despite current difficulties.
Proud of Quality and Customer Response
Patrick Dumont, President and Chief Operating Officer, praised the renovation quality and the commendable design work completed. The feedback from customers has been overwhelmingly positive, reflecting the high demand for the upgraded offerings at Marina Bay Sands. The anticipation for future growth remains strong, buoyed by a healthy tourism market in Singapore.
Project Returns and Market Strategy
In discussing the capital investment for renovations, Goldstein pointed out that the casino will no longer just support hotel operations but will serve a broader customer base. The premium mass market is predicted to grow substantially, with expectations of generating significant revenue. He emphasized that with their extensive experience in the market, they are confident in the anticipated returns from this investment.
Resilience of Macao’s Gaming Market
Focus also shifted to Macao, where Goldstein noted strong growth despite challenging economic conditions in China. The gaming market is showing double-digit growth, contrasting with struggles in the retail sector. He expects Macao’s gaming revenue to exceed $30 billion in the coming year, with hopes for a full recovery of the mass market segment. Goldstein noted that the recent positive numbers in October further affirm the resilience of gaming in the region.
Stimulus Impact on Recovery Timeline
When asked about recent government stimulus, Goldstein acknowledged its positive reception but stated it’s too early to assess its impact on customer behavior and the expected recovery timeline. He reiterated that Macao continues to show strong growth, demonstrating the segment’s resilience within a tougher economic landscape.
Resiliency and Recovery: Sands China Expects Steady Growth in Macau’s Gaming Market
Insights on Macau’s Gaming Market Performance
During a recent discussion, it became clear that Sands China remains optimistic about growth in Macau’s gaming revenue, even before recently introduced economic stimulus measures take effect. Grant Chum, President and Chief Executive Officer of Sands China, emphasized the impressive performance of Macau’s Gross Gaming Revenue (GGR), particularly in the premium market segment.
He stated, “Macau’s GGR demonstrates strong resilience, flourishing without the influence of stimulus measures so far. With improving economic conditions, we anticipate growth in vital areas like base mass and retail segments.” The enthusiasm for Macau was backed by recent trends showing that the market is outperforming other consumer segments in the region.
Chum also noted that in 2024, Macau has emerged as the top travel destination for Chinese tourists. He expressed confidence that as economic activities return to normal, Macau will benefit significantly.
Addressing Market Capacity and Future Developments
From Bank of America, analyst Shaun Kelley raised a question about plans for gaming capacity expansion. Patrick Dumont, President and Chief Operating Officer, indicated that details will be revealed in the coming months. He described their upcoming tower project as “the most important gaming and hospitality building in the world” that aims to cater to high-end segments, promising to revolutionize service and experience in Macau.
Dumont elaborated on the project’s ambitious framework, highlighting plans for impressive food options and a unique “Sky Park,” raising expectations for what the project will offer. He assured that Sands has a solid strategy to meet the demands of high-end consumers, aiming for long-term value.
Visitor Trends Show Positive Momentum
Shaun Kelley also inquired about visitor trends in Macau. Grant Chum acknowledged that there has been significant recovery in visitation, reaching approximately 93% of pre-pandemic levels from 2019 during the third quarter, with August witnessing numbers that surpassed past records. However, he noted that despite the rise in visitor numbers, overall spending did not improve in the base mass and retail segments as expected.
Chum explained that although day trips increased, the decline in overnight visitors—due to the Sheraton having 2,400 fewer available rooms—significantly impacted market revenue, as overnight guests typically spend much more than day visitors.
Despite these setbacks, Chum expressed encouragement from the growing interest in Macau as a tourist destination and affirmed that the city is regaining its appeal in the region.
Analyzing Room Availability and EBITDA Growth
Carlo Santarelli from Deutsche Bank brought up the timeline for more rooms becoming available in Macau and its correlation with the company’s EBITDA share statistics. Grant Chum agreed to delve deeper into the specifics of room availability and its contributions to EBITDA numbers, showcasing their strategic plans moving forward.
In conclusion, Sands China’s leadership maintains a cautiously optimistic outlook on the future, expecting Macau to solidify its position as a lucrative gaming market strengthened by recent economic adjustments and infrastructure developments.
Londoner Grand Casino’s Upcoming Suite Expansion Sparks Optimism for Financial Recovery
Highlighting Room Developments and Economic Outlook
The team at Londoner Grand Casino has made notable progress by delivering new assets by the end of September, including the opening of the casino and the licensing of the first 300 suites in the establishment. However, it’s important to recognize that during the fourth quarter, the total number of available rooms will decrease compared to the third quarter as the remaining Sheraton rooms will be taken offline. During this quarter, the licensed suites will remain capped at 300.
Anticipating a reduction of approximately 600 to 700 rooms in the fourth quarter relative to the third quarter, the outlook will remain stark until January. At that point, a substantial increase in new suites is expected, potentially exceeding 1,000 by the Chinese New Year. Subsequently, suite availability will gradually increase, reaching a total of 2,400 keys by mid-second quarter of the following year. By then, the overall key count should rise to over 10,600, approaching 11,000.
Consequently, the reduction in room inventory is likely to impact the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) significantly. Nonetheless, optimism surrounds the recovery of EBITDA as the Londoner Grand and the broader Londoner Macao come fully online. Londoner Macao aims to offer 4,400 suites, with over 60% dedicated to suites. This scale and quality are unmatched in the industry, featuring diverse dining options and a vibrant arena within its premises.
The leadership feels confident that these enhancements will help drive future EBITDA growth as the properties ramp up and demand rebounds in 2025. With anticipated positive trends supporting their optimism, the excitement surrounding these developments is palpable, particularly the twin assets of Venetian and Londoner Macao working in concert to benefit both the company and its clientele.
Carlo Santarelli — Analyst
I appreciate that. Thank you.
Operator
Next question comes from Brandt Montour with Barclays. Please proceed.
Brandt Montour — Analyst
Good evening, everyone. First question pertains to Singapore; the reported average daily rate (ADR) of $900 is quite remarkable. Given the current situation, was this ADR impacted by the number of rooms out of service, or does it reflect the high quality of your product?
Patrick Dumont — President and Chief Operating Officer
The answer is yes. The exceptional performance stems from how customers view the quality of our newly renovated rooms. The design and service levels have received positive feedback, contributing significantly to that ADR. While we temporarily reduced some room availability, we are proud of the renovations and expect the entire building to reflect this high standard by mid-next year.
Our ambition is to become the top hotel in Asia and globally. One of the key components helping to increase ADR in the future will be the opening of IR2, complete with its 15,000-seat arena. This venue is poised to be a major draw for tourists, enhancing visitor volume not only to Singapore but specifically to Marina Bay Sands, which should subsequently increase our ADR as more amenities come online.
Currently, we observe a slight compression due to fewer rooms available, yet this ADR also highlights the high quality and service levels of our renovated facilities.
Robert Glen Goldstein — Chair and Chief Executive Officer
To clarify, the current fluctuations are not overly concerning. In every market, we see exceptional products drawing gamers and non-gamers alike. While fewer available rooms can have an impact, we believe sustained demand will propel growth. The unparalleled quality of our accommodations and amenities is a significant factor, positioning us favorably within the competitive landscape.
Singapore remains an attractive destination, characterized by exceptional infrastructure and accessibility. We are confident in the long-term viability of our investment in this property, anticipating increases in both room rates and gaming capacity as demand continues to grow.
Brandt Montour — Analyst
Thank you for that clarification. Moving along to the Macao Arena, there’s been less focus on it compared to other parts of the business. Can you share your excitement regarding the arena renovations and whether there’s a timeline for significant events expected in 2025 that might drive traffic?
Patrick Dumont — President and Chief Operating Officer
Live entertainment plays an essential role in attracting premium visitors to Macao, and we have effectively leveraged this asset to enhance our premium mass business. The arena’s renovation will further empower our operations, and we look forward to showcasing diverse programming that will increase visitation and expenditure across our properties.
Grant Chum — President and Chief Executive Officer, Sands China
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Exciting Developments Ahead for Venetian Arena and Macao’s Gaming Landscape
The Venetian Arena, currently undergoing significant construction upgrades, is set to relaunch between late November and December. The first events, which will feature both entertainment and sports, are already lined up, allowing the venue to start drawing crowds before year-end.
In the meantime, programming continues at the 6,000-seat Londoner Arena, which staged 17 shows in the third quarter. These performances have proven effective in attracting visitors and increasing spending. The upgraded Venetian Arena is expected to enhance the entertainment scene, focusing on a variety of events such as sports and conferences.
Equipped with VIP boxes, backstage facilities, locker rooms, and advanced technology, the Venetian Arena will essentially be reborn, bringing fresh excitement to Macao. The dual programming at both the Venetian and Londoner arenas may lead to concurrent events, suggesting a boost to overall business prospects. Upcoming ticket sales for three events already scheduled for the quarter reflect the venue’s strong positioning in the market.
Brandt Montour — Analyst
Great. Thanks, everyone.
Operator
The next question comes from Dan Politzer with Wells Fargo. Please proceed.
Dan Politzer — Analyst
Hey, good afternoon, everyone. First question on Singapore on IR2. Can you discuss the current regulatory landscape and its outlook, including the timeline for licensing?
It seems likely that we will continue to see a duopoly in this market. How do you view the gaming tax rates when considering the returns on this new project?
Patrick Dumont — President and Chief Operating Officer
Currently, we anticipate a moratorium on changes to gaming taxes lasting until the early 2030s. Our perspective on investment is long-term, aiming to enhance value in Singapore and to remain a positive partner with the government in promoting tourism.
In this stable environment, we are excited about capital investments. While the project is six years away from completion, pending necessary government approvals by summer next year, we are optimistic about the potential benefits. Besides gaming, enhancements like entertainment venues, hospitality, and dining will also attract tourists, making the complex appealing as a whole.
We believe that high barriers to entry in the market will help maintain the duopoly structure for the foreseeable future, allowing us to invest strategically.
Dan Politzer — Analyst
Understood. Now, regarding Macao—promotional spending decreased last quarter. As you aim to return to mid- to high 30% margins, do you think this requires recapturing market share, or is overall market growth necessary?
Patrick Dumont — President and Chief Operating Officer
To achieve margins in the upper 30s to low 40s, we need revenue growth across all segments. Currently, some sectors have not fully rebounded to pre-pandemic levels, particularly the base mass segment. We have strategically invested to cater efficiently to the premium mass segment.
The entirety of our portfolio, including restaurants and facilities, can accommodate leisure tourists, but the absence of 2019 levels of visitation, especially in the base mass area, is an obstacle. Our path to higher margins relies on revenue growth.
I commend our team for their excellent cost discipline, which has ensured that margins remain intact amidst present revenue levels. Moving forward, investments in high-value renovations should drive increased visitation and thus, normalize revenue and margins over time.
Grant, do you have additional thoughts?
Grant Chum — President and Chief Executive Officer, Sands China
You covered that perfectly. Thanks.
Dan Politzer — Analyst
Thank you very much.
Robert Glen Goldstein — Chair and Chief Executive Officer
Operator, do we have further questions?
Operator
Yes. The next question is from Chad Beynon with Macquarie. Please proceed.
Chad Beynon — Analyst
Good afternoon, and thanks for your time. I have a question regarding Macao. Considering the recent retendering process, is there anything we should expect from the new executive in terms of market focus or concessions, or is it business as usual during the transition?
Robert Glen Goldstein — Chair and Chief Executive Officer
We remain committed to performing our duties effectively with the government and adhere to all requirements set forth…
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Las Vegas Sands Maintains Course Amid Leadership Changes and Global Competition
In light of new leadership, Las Vegas Sands reaffirms its commitment to Macao, focusing on steady operations without significant shifts. Executive Vice Chairman Wilfred Wong emphasizes that the company will remain aligned with the Macao SAR government’s vision. Las Vegas Sands has a long history of investing in Macao and plans to carry on its traditional business approach.
Wilfred Wong — Executive Vice Chair
Wong stated, “The concession commitment outlines our dedication to long-term growth. All six of us are carefully considering our future activities under the government’s guidance. Despite changes in leadership, we don’t foresee significant alterations to our strategic direction. We are committed to diversifying investments, particularly in non-gaming sectors.”
He reiterates that by conducting business as usual and listening closely to government plans, the company expects to maintain favorable operations in the region.
Chad Beynon — Analyst
Beynon inquired about the company’s outlook on global competition, particularly following a competitor’s recent license approval in the Middle East, which suggested promising returns. He asked if this region is being actively considered for investments.
Patrick Dumont — President and Chief Operating Officer
Dumont responded, “We are always exploring new investment opportunities. The Middle East market is under our observation, and we’ll continue to assess its prospects.”
Operator
The operator introduced the next question from Vitaly Umansky, an analyst with Seaport.
Vitaly Umansky — Analyst
Umansky posed two questions, starting with cash flow distribution from Sands China. He asked how Las Vegas Sands plans to manage capital outflow, especially considering future capital expenditures and the outstanding intercompany loan between LVS and Sands China. Investors are also curious if Sands China will return to being a higher dividend-paying stock.
Daniel J. Briggs — Senior Vice President, Investor Relations
Briggs interjected, noting, “That was quite a question.”
Robert Glen Goldstein — Chair and Chief Executive Officer
Goldstein encouraged Umansky to continue with his queries.
Vitaly Umansky — Analyst
Umansky expanded on his inquiry, asking about current views on the New York licensing process.
Patrick Dumont — President and Chief Operating Officer
Dumont expressed gratitude for the questions and shared insights about Sands China’s performance. He stated, “Despite disruptions, we expect significant EBITDA growth and cash flow. Historically, Sands China has been considerate of shareholders, which could lead to dividend payments in the upcoming year. However, this will ultimately depend on the board’s decisions.”
Dumont acknowledged the outstanding intercompany note between LVS and Sands China, hinting at potential repayment that could enhance capital allocation flexibility for LVS.
Looking ahead, Dumont reaffirmed that the company is poised for high-quality returns to capital, contingent on favorable market conditions.
Discussing capital allocation priorities, Dumont mentioned the importance of new ground-up developments, including investments in Macao and Singapore. These projects are set to provide exceptional growth opportunities. He explained that financing these developments involves raising cost-efficient debt capital.
The financing structure is expected to remain consistent with past discussions, with approximately 35% equity and the remainder from available debt capacity at the Marina Bay Sands (MBS) balance sheet.
Dumont concluded with remarks on the financing for MBS Phase 2, describing planned cash flow management and timing considerations outlined in their documentation.
The overarching goal is to facilitate ongoing investments, sustain dividend payments, and potentially increase share repurchases across the board.
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Goldstein Discusses New York’s Gaming Landscape and the Future of The Londoner
Robert Glen Goldstein — Chair and Chief Executive Officer
Can you clarify what the discussion was regarding New York? I missed some details.
Vitaly Umansky — Analyst
I was inquiring about your views on the rent situation and the new processes underway. Where do you anticipate things heading, considering there have been some delays?
Robert Glen Goldstein — Chair and Chief Executive Officer
Certainly. We expect to submit our applications for licensure in New York around the spring of 2025, with a decision likely coming in the first quarter of 2026. We are still very interested in the process.
As a longtime supporter of New York and similar regions, my only apprehension lies in the rapidly growing online gambling sector. The trends we’re observing in New Jersey, Pennsylvania, and Michigan are important to factor in.
Our big investment in physical buildings requires a long-term outlook. I need to consider how online gambling will affect potential revenues in our chosen locations. For example, as I observe the online market’s growth in New Jersey, it raises concerns about land-based revenue viability.
Currently, it seems likely that online revenues will surpass those from traditional casinos in New Jersey within the next couple of years—an extraordinary shift.
Vitaly Umansky — Analyst
Would that imply that if New York were to legalize online gambling, you’d need to reassess your proposal for potential investments in the state?
Robert Glen Goldstein — Chair and Chief Executive Officer
Absolutely. It’s more complicated than that. Given that our facilities take extensive time to build—like in Singapore—we need to understand how any legalized market will affect our financial commitments. Every new law that allows online gambling makes you rethink your investment strategy. This trend is observable in multiple states including New York, Michigan, and Florida.
Vitaly Umansky — Analyst
That clarifies things. Thank you for the insights.
Robert Glen Goldstein — Chair and Chief Executive Officer
I appreciate your questions.
Operator
Next up is George Choi from Citigroup. George, you’re on air.
George Choi — Citi — Analyst
Thanks. I visited the Londoner Grand recently and noticed the minimum bets at the Baccarat tables were lower than at the Londoner Casino. Is this a temporary situation or a sign of differing market strategies?
Robert Glen Goldstein — Chair and Chief Executive Officer
This variance points more toward the rooms than any marketing decisions. When I visited about ten days ago, I noticed a pattern: over time, the Londoner and Venetian will emerge as key players in the market. This isn’t changing due to marketing efforts; it’s about completing infrastructure. We need to ensure we attract premium customers and have the right facilities in place to meet that demand.
We began this journey with the Londoner five to seven years ago, and I expect completion by spring 2025. I am confident that both the Londoner and the Venetian will lead the market without concern.
George Choi — Citi — Analyst
Great insight. Could you share how the full opening of the Londoner next year might influence EBITDA for neighboring properties like the Parisian Macao?
Robert Glen Goldstein — Chair and Chief Executive Officer
That’s an important question. I anticipate that once the Londoner and the Nish are fully operational, each could generate $1 billion in revenue. My goal is for each building to exceed that target while generating similar results across our broader portfolio, aiming for an overall growth of $1 billion. However, for us to reach these projections, we need to see a revival in mass gaming traffic.
Recently the correlation between visitor numbers and gaming revenue has been disrupted, which has raised concerns. In the long term, I firmly believe China’s economy will stabilize, allowing for recovery in the gaming sector. The Macao market is also expected to continue its upward trajectory beyond current forecasts.
While there may be challenges to areas like the Four Seasons or the Parisian, I remain optimistic that our diverse portfolio will provide substantial benefits as properties begin to leverage one another effectively. As the Londoner continues to gain strength, so will the rest of our offerings.
Strong Golden Week Results Lead to Market Optimism
Analyst Insights on Company Performance
George Choi — Citi — Analyst
It doesn’t mean others get weaker. It just means there’s more strength in the market. The real growth for this company will happen when mass recovery takes place. That moment will lead us to a new level of opportunity, and that day is coming.
CEO’s Response to Golden Week Outcomes
Robert Glen Goldstein — Chair and Chief Executive Officer
Thank you for the question, George. I appreciate your insights. Enjoy your reports.
Jefferies Analyst Queries About Results
Operator
The next question comes from David Katz with Jefferies. Please proceed.
David Katz — Analyst
Hello, and good evening. I’d like to discuss Golden Week for a moment.
Before the event, expectations on the Street were quite distinct. However, the actual results exceeded those expectations. I’m curious about your insights on this. Did you anticipate such a strong performance, and what factors contributed to these results?
CEO’s Future Perspective
Robert Glen Goldstein — Chair and Chief Executive Officer
As a standard practice, we will discuss this in more detail in 92 days, as we do not comment on current quarters during the earnings call. I appreciate your understanding.
David Katz — Analyst
Thank you.
Conclusion of the Call
Operator
This concludes today’s conference call. Thank you all for your participation. [Operator signoff]
Call Participants
Daniel J. Briggs — Senior Vice President, Investor Relations
Robert Glen Goldstein — Chair and Chief Executive Officer
Patrick Dumont — President and Chief Operating Officer
Joseph Greff — Analyst
Grant Chum — President and Chief Executive Officer, Sands China
Joe Greff — Analyst
Stephen Grambling — Analyst
Rob Goldstein — Chair and Chief Executive Officer
Robin M. Farley — Analyst
Robin Farley — Analyst
Shaun Kelley — Analyst
Carlo Santarelli — Analyst
Brandt Montour — Analyst
Dan Politzer — Analyst
Chad Beynon — Analyst
Wilfred Wong — Executive Vice Chair
Vitaly Umansky — Analyst
Daniel Briggs — Senior Vice President, Investor Relations
George Choi — Citi — Analyst
David Katz — Analyst
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